00 per share is the current price for Foster Farms' stock. The dividend is projected to increase at a constant rate of 5.50% per year. The required...

$33.00 per share is the current price for Foster Farms' stock. The dividend is projected to increase at a constant rate of 5.50% per year. The required rate of return on the stock, rs, is 9.00%. What is the stock's expected price 3 years from today?

a. $37.19

b. $38.75

c. $36.96

d. $37.42

e. $36.50

CMS Corporation's balance sheet as of today is as follows:

Long-term debt (bonds, at par)

$10,000,000

Preferred stock

2,000,000

Common stock ($10 par)

10,000,000

Retained earnings

4,000,000

Total debt and equity

$26,000,000

The bonds have an 8.1% coupon rate, payable semiannually, and a par value of $1000. They mature exactly 10 years from today. The yield to maturity is 12%, so the bonds now sell below par. What is the current market value of the firm's debt?

a. $7763365

b. $7766788

c. $7764221

d. $7765077

e. $7765932